Introduction to E-Invoicing KSA API

Introduction to E-Invoicing

Electronic invoicing will be rolled out in two phases in KSA. For the first phase, enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to today, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction.

What is E-Invoicing?

​​​​​​What is E-Invoicing (FATOORAH)?

Electronic invoicing is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that allows the exchange and processing of invoices, credit notes & debit notes in a structured electronic format between buyer and seller through an integrated electronic solution.

What is an electronic invoice?

A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that is converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice.

Tax Invoice

An invoice that is usually issued by a Business to another Business (B2B), and contains all tax invoice elements.​

Simplified Tax Invoice

An invoice that is usually issued by a Business to consumer (B2C) and contains all simplified tax invoice elements.​

How does E-Invoicing (FATOORAH) work?

E-Invoicing will be rolled out in two phases in KSA.

For the first phase, enforced as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to invoices generated prior to 4 Dec 2021, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction.

For the second phase, enforceable starting January​ 1st, 2023 in waves, the electronic solution must be integrated with ZATCA's systems, and e-invoices should be generated in the required format.

What are the required fields for the e-invoice in phase one (generation phase) and phase two (integration phase)? ​

Tax Invoice Sample

Simplified Tax Invoice Sample

Roll-out phases

​ZATCA has published e-invoicing requirements that will be rolled out into two main phases in KSA:

https://zatca.gov.sa/en/E-Invoicing/Introduction/Pages/Roll-out-phases.aspx

PHASE 1 (as of December 4th, 2021)

Phase 1, known as the Generation phase, will require taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements. Phase 1 is enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT.

PHASE 2 ​ (starting from January 1st, 2023)

Phase 2, known as the Integration phase and rolled out in waves by the targeted taxpayer group, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s systems.

ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance, and the enforcement date for the first target group will not be earlier than January 1st, 2023.

Guidelines

Simplified Guidelines for E-Invoicing

This guide contains the requirements for all taxpayers subject to the E-Invoicing Regulation to prepare and update their invoicing solutions for phase one (generation phase) and phase two (integration phase).

https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/Simplified%20guide_En.pdf

https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/E-invoicing_Simplified%20GL.pdf

Detailed Guidelines for E-Invoicing

This guide contains requirements for E-Invoicing (FATOORAH) as well as technical and security requirements for taxpayers and E-Invoicing providers. It also includes detailed technical requirements such as invoice specifications, data dictionary, and security specifications for the E-Invoicing application.​​​​

https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/E-Invoicing_Detailed__Guideline.pdf

Detailed Technical Guidelines for E-Invoicing

This guideline includes the technical requirements for the e-invoicing solutions.

https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/E-invoicing-Detailed-Technical-Guideline.pdf

Laws & Regulations

​​E-Invoicing Bylaw

The Authority announced that its Board of Directors has approved the e-invoicing regulations, which were published on Friday, December 4th, 2020. The regulation has become effective starting from the date of publication, providing that the implementation in terms of invoices generation will become mandatory for taxpayers by December 4th, 2021.

https://zatca.gov.sa/en/E-Invoicing/Introduction/LawsAndRegulations/Documents/E-invoicing%20Regulation%20EN.pdf

The Controls, Requirements, Technical Specifications, and Procedural Rules for implementing the provisions of the E-Invoicing Regulation (​​24 June 2022)

Zakat, Tax and Customs Authority on Friday, June 24th published the updated controls, requirements, technical specifications, and procedural rules necessary to implement the provisions of the E-Invoicing regulation.​​​

https://zatca.gov.sa/en/E-Invoicing/Introduction/LawsAndRegulations/Documents/E-Invoicing%20Implementation%20Resolution_EN.pdf

Systems Developers

QR Code Creation

https://zatca.gov.sa/en/E-Invoicing/SystemsDevelopers/Documents/QRCodeCreation.pdf

E-Invoice Data Dictionary

This document contains names, definitions, and attributes for data elements.

https://zatca.gov.sa/ar/E-Invoicing/SystemsDevelopers/Documents/20230519_EInvoice_Data_Dictionary%20vF.xlsx

E-invoice XML Implementation Standard​

This document contains technical requirements for the syntax and the business content of the electronic invoice that taxpayers need to meet to comply with the “E-invoicing” resolution published by the Authority.

https://zatca.gov.sa/ar/E-Invoicing/SystemsDevelopers/Documents/20230519_ZATCA_Electronic_Invoice_XML_Implementation_Standard_%20vF.pdf

Security Features Implementation Standard​

This document contains security requirements for electronic invoices that taxpayers need to meet to comply with the “E-invoicing” Resolution.

https://zatca.gov.sa/ar/E-Invoicing/SystemsDevelopers/Documents/20230519_ZATCA_Electronic_Invoice_Security_Features_Implementation_Standards_vF.pdf

Fatoora Platform

Zatcafatoora.zatca.gov.sa

Fatoora Portal User Manual ​​​​This user manual contains the steps of using the Fatoora portal to onboard and integrate the e-invoicing solutions.

https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/Fatoora_Portal_User_Manual_English.pdf